Stocks are expected to move sideways in the first trading week of 2018 after the market’s strong finish in 2017, as most investors return from the holidays.
Some investors may cash in on gains after the market’s rally in the last trading days of 2017, according to analysts.
“The initial three-day trading week might see some soft trades as participants gradually return from holiday break. Any lull, however, would be an opportunity to position on bargains, especially those that have formed solid base or have retraced form their recent gains,” F. Yap Securities said.
First Metro Investment Corp. continues to bet on consumption growth to drive earnings of listed firms.
Global uncertainties and the inflationary impact of the recently passed phase 1 of the tax reform package may also affect the trading strategies of investors in the first trading week of 2018.
The PSEi, the 30-company benchmark index of the Philippine Stock Exchange, surged 1.5 percent in the last trading week of 2017 to close at 8,558.42 on Dec. 29, while the broader all-share index also climbed 1.4 percent to 4,989.97. The bellwether posted total gains of 25.1 percent in 2017.
All sub-indices ended in the green led by financials which rose 3.3 percent, property which went up 1.9 percent, mining and oil which advanced 1.1 percent and services which increased 1 percent.
Industrial and holding firms also rose 0.9 percent and 0.3 percent, respectively.
Foreign investors were net buyers last week by P3.38 billion. Total foreign buying reached P52.1 billion in 2017.
The stock market ended 2017 with total market capitalization of P17.58 trillion.
Among the best performing stocks last year were Bloomberry Resorts Corp. which jumped 77.7 percent, East West Banking Corp. which advanced 72.3 percent, SM Investments Corp. which rose 51 percent, LT Group Inc. which increased 49.2 percent and International Container Terminal Services Inc. which gained 46.6 percent.
Among the worst performing stocks in 2017 were Philex Mining Corp. which fell 29.5 percent, Nickel Asia Corp. which dropped 20.7 percent, Robinsons Land Corp. which shed 18.1 percent, China Banking Corp. which dipped 12.4 percent and 8990 Holdings Inc. which decreased 10.1 percent.